Can you trade IPOs using options right after a companies IPO has started trading on the stock market?
I want to know if when a company has an IPO, if you can start using options to trade that companies stock right after the IPO has started trading on the stock market? Please give me a simple, easy to understand answer to earn Best Answer.
Public Comments
- Normally the stock options covenants list any restrictions. There is no SEC regulations if that is what you need.
- what are the put and call dates on your options?
- No, you cannot. Options will not be listed on a stock until some time after the stock has been trading for some time. Options exchanges have minimum requirements for a stock before they will list options on the stock. Among the requirements is a minimum trading volume. Prior to the IPO there is no volume because the stock is not trading.
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